Most Japanese stocks dropped, led by automakers as a stronger yen dimmed their earnings prospects. Toyota Motor Corp. sank 1.9 percent after the local currency strengthened against the dollar yesterday. Toyoda Gosei Co., the automaker’s affiliate, fell 4 percent after lowering its earnings forecast. Takeda Pharmaceutical Co., the nation’s biggest medicine producer, climbed 1.8 percent as investors sought companies whose profit is insulated from a slump. “As we enter the earnings season, no good news can be expected,” said Yoji Takeda, who manages about $1.1 billion at RBC Investment (Asia) Ltd. in Hong Kong. “Actual numbers and forecasts are likely to be even worse than investors expect. I’ve already increased my holdings of defensive stocks.” The Topix index slipped 2.74, or 0.3 percent, to 858.15 as of 1:18 p.m. in Tokyo. The Nikkei 225 Stock Average rose 5.11, or 0.1 percent, to 8,881.53. About three shares fell for every two that climbed on the Topix, which is little changed for the week. The yen appreciated against the dollar to as much as 90.85 yesterday, the strongest since Jan. 2, from 92.49 at the close of stock trading in Tokyo. A stronger yen reduces the value of overseas sales when converted into local currency.

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